Maersk first quarter profit soars 82pc to US$1.2 billion on 10pc revenue hike

DANISH shipping giant Maersk's first quarter profit soared 82 per cent year on year to US$1.2 billion drawn on revenue of $14.5 billion, up 10 per cent due to higher container freight rates, container volumes and oil prices.


Maersk Oil made a profit of $512 million, up 35.2 per cent and was helped by the 38 per cent rise in oil prices to $105 per barrel. Nonetheless, Maersk Oil anticipates its 2011 result to fall below that of 2010's achievement because of a higher exploration costs expected this year.


"We have had a good start to the year. Our businesses have performed very well, even as tanker rates have remained low, and container rates have been decreasing," said says group CEO Nils Andersen.


"In the past six months we have made significant investments in ships, terminals, drilling rigs and oil fields. These reflect our continued strong confidence in the long term future and our ability to compete successfully," he said.


Containers made a $438 million profit. The number of containers carried increased by five per cent to 1.84 million FEU, while the average freight rate of $2,908 per FEU was two per cent higher year on year.


The result for terminal activities was a profit of $139 million. Container throughput increased by eight per cent to 7.8 million TEU.


The group expects the global demand for seaborne containers to grow by six to eight per cent in 2011. The global supply of new tonnage is expected to match or grow more than the freight volume especially on the Asia to Europe trade.


But the group expects freight rates to remain under pressure in the short term, yet with a stronger market emerging in the second half, while increased bunker and time charter costs are expected to continue to impact margins. The group's container activities expect a satisfactory result, but below the 2010 result.
(Source:http://www.schednet.com)